FTSE 100 recovered from negative open and turn higher helped by Standard Life and Vodafone that beat earnings expectations. The reopening process also helps momentum today as Britain prepares to move from a stay at home to stay alert. PM Boris Johnson will announce plans to unwind the lockdown restrictions on Sunday. New York is preparing to open the less risky businesses on Friday.
FTSE added over 20% since the March lows amid the prospects of the return to normality. What can go wrong? News today that there are five new confirmed cases in Wuhan and South Korea increased investors fears that with the ease of the lockdown, we might see a second wave of infections that would cancel a V-shaped recovery.
Vodafone is 5.95% at 119.82 as full-year core earnings rose 2.6% to €14.9bn, and confirmed its dividend but downgraded guidance for 2021 due to COVID-19 outbreak. Standard Life Aberdeen Plc is 3.30% higher at 221.75.
FTSE 100 is 0.41% higher at 5,962 keeping the positive momentum alive that formed after the index breached above the 50-day moving average. The technical outlook is positive in the short term above the 50-day moving average, but the longer-term technical picture remains bearish as the index continues to trade below the 100 and 200-day moving averages.
On the upside, minor resistance for FTSE index stands at 5,978 the daily top. The next resistance for the index is at 6,154 the high from April 30. If the index breaks above 6,154 the next resistance will be met at 6,457 the high from March 9.
On the contrary, initial support for the FTSE index stands at 5,911 the daily low. If the FTSE breaks lower, the next support area is at 5,770 the 50-day moving average. More support for the FTSE index would be met at 5,634 the low from April 22.